U.S. wins car import duties trade case against China

WASHINGTON Sat May 24, 2014 6:21am IST

An employee yawns as he walks among General Motors' new Chinese-made cars at a parking lot in Shenyang, Liaoning province April 21, 2014. REUTERS/Stringer/Files

An employee yawns as he walks among General Motors' new Chinese-made cars at a parking lot in Shenyang, Liaoning province April 21, 2014.

Credit: Reuters/Stringer/Files

Stocks

   

WASHINGTON (Reuters) - The United States has won a trade dispute with China over duties slapped on U.S. exports of large cars and sport utility vehicles, the World Trade Organization said on Friday.

China, the second-biggest market for U.S. auto exports, in 2011 started levying punitive duties on vehicles with engines of 2.5 liters and above, in retaliation for U.S. trade policies. The duties have since expired.

China, which only joined the WTO in 2001, is the second most common target of U.S. disputes at the trade body after the European Union.

U.S. Trade Representative Michael Froman said the duties affected $5.1 billion in U.S. auto exports in 2013, including popular models such as the Jeep Grand Cherokee, Buick Enclave and Cadillac Escalade. Total U.S. auto exports to China totaled $8.6 billion.

Although Froman said he was pleased China had dropped the duties, which ranged up to 21.5 percent, he said it was worrying the United States had brought, and won, three WTO cases against China over unfair import duties.

"We remain deeply concerned by the troubling pattern of China's misuse of anti-dumping and countervailing duty measures," Froman said at a news conference, flanked by Michigan lawmakers Sander Levin and Debbie Stabenow, whose state is home to U.S. car makers Chrysler Group LLC, Ford Motor Co (F.N) and General Motors Co (GM.N).

China argued the duties were imposed because U.S. automakers had received U.S. government subsidies and dumped their vehicles into the Chinese market, harming China's auto industry.

U.S. Senator Charles Schumer has called on the USTR to file another complaint against China over cyber-spying, after the United States on Monday charged five Chinese military officers and accused them of hacking into American nuclear, metal and solar companies to steal trade secrets.

Schumer, who represents New York state in Congress, said the actions breached a WTO agreement on intellectual property requiring countries to protect trade secrets.

Asked if the USTR was considering any action, a senior USTR official said the office always looked actively at problems around the world, but would not talk about potential actions.

A spokesman for China's Embassy in Washington noted that the WTO rejected some arguments by the United States and supported some of Beijing's. China also had reservations about some elements of the WTO decision, such as the calculation of the dumping margin, spokesman Geng Shuang said in an emailed statement.

(Reporting by Krista Hughes, additional reporting by Ben Klayman in Detroit; editing by G Crosse and; Paul Simao)

Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Barack Obama in India

Reuters Showcase

Coal Mining

Coal Mining

India to open coal to commercial mining firms soon, minister says  Full Article 

RBI Loan Rules

RBI Loan Rules

RBI relaxes overseas loan recast rules   Full Article 

E-commerce Firms

E-commerce Firms

Amazon, e-commerce rivals fuel commercial property boom in India  Full Article 

Growth Forecasts

Growth Forecasts

Indian economic growth forecasts pegged back, despite rate cuts: Reuters Poll.  Full Article 

Uber is Back

Uber is Back

Uber back in Delhi; govt says must await approval.  Full Article 

Markets at Record

Markets at Record

Sensex rises to record after ECB stimulus programme.  Full Article 

Pharma Sector

Pharma Sector

Ipca Labs hit by FDA ban on plant for standard violations.  Full Article | Related Story 

Forex Reserves

Forex Reserves

India FX reserves at record high as RBI fortifies defences  Full Article 

QE for Euro Zone

QE for Euro Zone

ECB launches 1 trillion euro rescue plan to revive euro economy.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage